Jan 17

What is still amazing me in the eSourcing and eProcurement world is the lack of transparency of prices. So here is my question of the day:

  • how much does it cost to get a full managed reverse auction?
  • Which pricing model do you know and/or use (fixed-fee, success fee, mixed…)?

Let me start dropping some figures:

  • Eutilia N.V. (currently in liquidation), was – in 2006 – charging €5.000 on average and applying €3.000 minimum. Of course, the amount at stake during the auction was a key driver to set the final price, when this one was not negotiated on a volume basis.
  • In 2003, Ramesh Mehta (Moia CEO since 2002) dropped $1.600 as a single line full managed event price and $2.000 for multi-lines. Read his conversation with Debbie Wilson here.

If I find more information about full managed reverse auction pricing, I will add it later-on here on this post.

What about you? What pricing range are you aware of?


Related Posts:
  • Reverse Auction Best practices
  • 5 myths about reverse auctions
  • An intuitive Reverse Auction decision tool
  • Source One offers reverse auction and RFx free
  • Saving on office furnitures with reverse auctions
  • Reverse Auctions: Bad Idea?


  • 3 Responses to “How much does it cost now to run a full managed reverse auction?”

    1. 1. David Rotor Says:

      Came across your posting as I’m doing some work on this question right now as well. The cost of running e-auctions is hard to nail down. You can pay for a consultant supported model or get the auction “free” under a vendor pay model. A few factors to consider:

      – one-off event, multiple events, unlimited license
      - software only, or supported service
      - spend volume
      - vendor pay or buyer pay

      Based on some prelininary work I’m seeing one-offs running about (US$’s) $5,000-$10,000 depending on the amount of support provided. Unlimited licenses (run as many events as you want) for $75,000-$200,000.

      Over the next couple of months I’ll be taking a look at e-auction pricing and post what I find. Maybe we should conduct an auction for auction services. ;-)

      Cheers,

      David Rotor

    2. 2. Reverse Auctions Says:

      Here is one good reverse auction website and the fees are reasonable http://www.oltiby.com/resources-auction-fees

    3. 3. Beyond Auctions Says:

      This company’s ExpediSource enterprise web app does auctions plus user-custom survey, RFI, RFP and contract functions. Built around a master supplier portal that automates the prequal process. Includes robust collaboration/notification tools. Sold as client-specific sites with unlimited usage for less than $40K/year. http://www.acuitysourcing.com http://www.expedisource.com

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